Life Insurance 479 views November 2, 2021

Life insurance plans protect your loved ones financially in case of your death. But, what if the death occurs due to suicide? The company will still pay your nominee the death benefit in case the incident happens after 12 months from the policy inception date. However, if the suicide happens within a year of policy inception, he nominee will receive 80% of the paid premiums or surrender value, whichever is higher, as per the Insurance Regulatory and Development Authority of India (IRDAI). Let’s read this page below and learn more about the suicide clause in life insurance plans.

Why there is a Suicide Clause in Life Insurance?

The insurance company puts a suicide clause in insurance plans because the claim arising due to the same can be an act of fraud. This is why the company pays the death benefit to the nominee after 12 months from the date of inception in case of suicide.

Does the Suicide Clause Differ Based on the Type of Plans?

Yes, the death payout in case of suicide within a year from the date of inception may vary from plan to plan. In the case of a term plan, endowment plan or savings plan, the suicide clause is as follows.

  • 80% of the paid premiums
  • The accrued surrender value

Whereas, in a unit-linked insurance plan, the suicide clause is as follows –
Fund value + charges other than the fund management charge recovered after the death

Terms and Conditions Applicable to the Suicide Clause in Life Insurance Plans

The nominee can get the suicide clause benefits under a life insurance plan if it meets the following –

  • The policy should be in force
  • The nomination of the person receiving the benefit in case of death should be declared at inception or before the death.
  • Whether the life assured is sane or insane, the suicide clause will remain the same
  • The suicide clause shall apply even in case of reinstatement of the policy. So, if the death occurs due to suicide within one year of revival, the nominee will get the suicide clause benefit.

How to Apply for a Suicide Claim?

The claimant can file a claim in respect of the life assured’s death due to suicide by following the below procedure –

  • Notify the insurer about the claim by calling the toll-free number or sending an email to their registered address
  • Get the claim form, fill it and submit the same to the insurer along with the required documents.

Documents Required for a Suicide Claim

The company may require the following documents for claim processing –

  • Claimant’s statement
  • Original policy document
  • Copy of death certificate issued by the local municipal authority
  • Copy of claimant’s photo id proof and address proof
  • Cancelled cheque or copy of the passbook
  • Copy of medico-legal cause of death certificate
  • Medical records if the life assured is admitted to the hospital
  • Previous medical records of the life assured
  • Medical attendant’s or hospital certificate issued by the doctor
  • Certificate from employer in case of a group policy
  • Post mortem report and chemical viscera report

People Also Read